ProCAP Nearing End of Receivership
Monday, August 20, 2012
The taxpayer-funded nonprofit that came under fire late last year after an independent audit revealed rampant misspending within the organization is preparing to come out of receivership, GoLocalProv has learned.
A hearing is set for next Monday, August 27, where a timeline for helping the Providence Community Program (ProCAP) emerge from receivership is expected to be discussed.
ProCAP found itself more than $2 million in the hole when it was placed in receivership last December, less than a month after Mayor Angel Taveras sent a scathing letter to the organization’s former executive director Frank Corbishley citing “staggering mismanagement” as the reason millions of dollars in federal funding for low-income city residents were considered at risk.GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST
"Providence has been struck hard by the worst economic crisis since the Great Depression and children and families need ProCAP helping them with a hand up more than ever," Taveras wrote in the letter. "Unfortunately it appears that mismanagement has undermined ProCAP's mission; thereby hurting the least fortunate among us. The people of Providence deserve better. As such, I joined the Board Chairman in calling for your immediate resignation."
The 47-year-old organization, which was established under President Lyndon Johnson’s “War on Poverty” program, was designed to assist the city’s poorest residents with home heating costs as well as several other initiatives. But accountant Ken Richardson’s audit last year unveiled a “series of inconsistencies” with health benefits, educational subsidies, cell phone usage and vehicle usage within the organization.
According to a report filed by court-appointed receiver Thomas Hemmendinger, “mismanagement and poor performance” landed the organization in a position where it “lacked the funds to stay in operation.”
The report also detailed how both federal and state law enforcement agencies were investigating the organization. It is unclear whether those investigations are still taking place.
At the time, Hemmendinger suggested a series of layoffs and other organizational changes would keep ProCAP open. The board of directors, chaired by Council President Michael Solomon, also named Frank Shea its interim executive director.
A spokesperson for ProCAP did not return multiple requests for comment for this story.
Dan McGowan can be reached at [email protected]. Follow him on Twitter: @danmcgowan.
